>> before this morning, so much for phantom pigs, they apparently do not fly. unlike game maker farmville. zynga cut the outlook again and the stock is falling out of bed. >> absolutely, this is down about 22% this morning, give or take a few percentage points and this is a $10 ipo back in december and it's looking like it's going to look like around 2 1/4 today, stuart, as you know, cutting the outlook for the second time in a row this year right as we see it down. >> it's down 80% from the ipo, i think, that's the farmville. >> it's atrocious, get an ipo for $10 and hovering around $2? you know, in less than a year, it's tough. stuart: and phantom pigs don't

fly. thanks, nicole. back to you very, very shortly and let's move that graphic, please. let's get back to the serious moves. this is the jobs report. this is brian wesbury, joins us from nashville. all right, brian for the benefit of viewers just joining us i've got this number. >> right. stuart: 7.8%, a big drop in the unemployment rate. >> it is. stuart: 873,000 people apparently found work last month. but there are only 114,000 new jobs. i tell you, brian, there is widespread distrust and skepticism about these numbers. go. >> yeah, well, first of all, stuart, before i get started, i have been on the road all week long, rochester, charleston, west virginia, memphis, tennessee, nashville, tennessee, airplanes are full, restaurants are full, hotels are busy, across this country. and by the way, being on the road all week, i've missed my sons, my two sons, kyle and graham, they're sitting at home

and they have school off today, so hi, boys. now, let me answer this question for you, because the data that-- the economic data we have said all along for the past three years is a plow horse, you know-- >> wait a minute, but brian, hold on, look, look, our viewers are chiming in vigorously as we speak. >> yeah, look. stuart: they don't believe the numbers. they think it's oh so convenient for the obama administration. what do you say? >> stuart, stuart, i'm going to tell you something. one of-- let's get serious here. our status stigses in washington d.c., i'm not saying they can't play a little bit at the margins, but we've had a declining unemployment rate and a growing economy for almost three years now and if people don't believe the-- i think one of the reasons people have a problem believing the numbers, they bet so heavily on really bad economy, i think. stuart: brian, wait, wait. i know what you've been saying, i know what you've been saying.

>> the unemployment rate to be below #-- >> the reason why the unemployment rate has come down is because god knows how many millions of people have dropped out of the work force and now, suddenly, oh, how conveniently, in the month of september, 873,000 of them come right back in and say, i got a job. what's with that? >> well, okay, there's two surveys, i mean, if you really want to get in the weeds. stuart: i do. >> the household survey where we knock on people's doors and ask them, are you working or are you not. if you look at the three-month average, by the way, you have to, because this number is hugely volatile as we see today. it's 180,000 jobs over three months on an average basis. if you look at the payroll number over the past 31 months, it's up about 150,000 a month. so, all of these numbers that we're seeing on employment. if you use a three-month, a six month or a 12 month average, were still running in that 150,

160, kind of mediocre, literally french-like employment environment. stuart: okay. wait a minute. >> we're not going down to 5% unemployment. we're just, we're a plow horse for a-- >> okay, they are not cooking the books, that's what you're saying. >> i don't believe they are. i'm not-- >> look, this economy is not great. anybody who says it's great. the problem i've had is that lots of republicans have tried to spin it as so bad if we get a mediocre number it looks better than it is and i think that's why so many people are freaking out this morning, 7.8 is way too high. we have to have 5% unemployment. stuart: brian wesbury, go home to the boys. give them our best. >> all right. stuart: and i didn't give them you a hard time. you tell those lads i did not give him a hard time. >> it was awesome, stu, thank you. stuart: awesome. i've gotten seconds, i do want to know, brian, are you still

there. >> all right, all right. stuart: hold on a second, hold on a second. >> i never do that, now that, hold on a second say that. i've gotten seconds. tell me, didn't you raise the odds of going into a recession from 10% to 25% next year, real fast? >> yes, i did. and we were up to 25. it's still 75% chance that we don't have recession. stuart: okay. hey, brian, now you can go. go back to the boys, a pleasure. thanks so much, brian. >> thanks, stuart. stuart: what do you think of the jobs report? are you skeptical? go to our facebook page and chime in on this one, please. the california gas price spike is huge, 20 cents overnight in los angeles, are we going to see $5 gas in california soon? it could be, you know. we're going to look at that after the opening bell. can your hearing aid do this?

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around 11%. that's just in from the romney camp reacting to the friday morning jobs report showed a decline in jobless rate 7.8% with only 114,000 new jobs created. there are contradictions there and there's some mistrust of the numbers. the stock market opening in the wake of that jobs report. what are we going to see? we are expecting a flat market. down 6 or 7 points in the very, very early going and look, we're dead flat. i want to bring in nicole petallides on the floor of the exchange. because it seems to me that there is no market reaction to one of the biggest economic reports of the year. now, i'm not sure i can explain it, can you? >> i can tell you what the traders are saying. you're absolutely right. this number is a big piece of the economic news this year in 2012. we saw the futures jump and move higher and then now, come back

down. why? when i just asked trading and talking with ben willis over at albert freid and company. people are in shock, trying to make heads or tails of this report, stuart. this is unbelievable to see this kind of move, a surprise to the upside. stuart: yep, there is skepticism, it's a convenient political number. if you dig within the numbers looks like 873,000 people found work and that's why the jobless rate came down the two sides of this fence here today we'll discuss both. >> it feels so unreal, stuart. it feels so unreal. maybe it's real, but i tell you these guys feel like they cooked the books and feel unsure and trying to make heads or tails out of what was said. stuart: by the way i'm looking at the board and the dow has opened 57 points higher. i told you dead flat. now 61 firmly above 13-6. maybe there much lower unemployment rate did have a positive impact on stocks.

we'll follow it throughout the day and i'm sure well, you're rooted to the spot, i know you are. thanks so much. nicole. we're not going to ignore what refinery problems are doing to gas prices in california. i'm going to show you a spike, a real spike. look at this, the state wide average for gas, i'm talking regular gas, not that premium stuff you put in your mercedes. no, this is not mercedes premium beverly hills stuff, this is regular, up 17 cents state wide. 4.48 is the california average and in individual cities. it's as bad if not worse. ventura up. 4.53. l.a., up 9 cents in one night. 4.53 and in san francisco 16 cents higher at 4.59 we are going to talk to our buddy, the gas buddy, at the top of the hour. where has this been going. republican congressman kevin brady joins us from houston. this is friday, jobs report, you've seen the numbers, a sharp drop to 7.8%.

i want your initial reaction to this. what do you think? >> you know, i think we're focused on the the wrong number. i think the jobs number. 114,000, extremely weak again, doesn't even keep pace with population growth. we ought to be 250,000 or 350,000 new jobs every month. this far out from the recession and if you look closely at the unemployment number, yes, more people went back to work, but the bulk of them, nearly 600,000, got only part-time jobs. they wanted full-time and they're getting part-time and that's a key reason that the unemployment number dropped and we don't want a part-time recovery. stuart: thank you for bringing that up. because you are dead right. 873,000 people stay that they found work, this is from the household survey. 873,000. but as you correctly point out. if you look within that 800,000 number, around 600,000 of them were in part-time work. which they don't necessarily

want. and that's not a picture of a robust employment recovery. >> yeah, this would be a different report if it was three years ago. and we were fighting to get out of the recession. it's been three years since this ended and these numbers are very, very weak. the economy this year continues to be slower than last year, and the year before that, so, we've got a long, long way. plus, the number of people who are looking for work is still nearly at a 30-year low and that's not the sign of a healthy recovery either. stuart: okay, governor romney in the debate looked right into the camera and he gave his five point plan. i'm sure you were watching, i'm sure you heard it. what do you think about his plan for growth, growing the economy? >> it's more than doable. in fact, you know, if you look, his effort to try to create 12 million new jobs, the truth is, if this president's recovery was just average, 4 million more people would be going to work rather than looking for work.

if it had been a reagan level recovery, more than 6 million people would be going back to work. so, what governor romney is proposing as a recipe for economic growth, i think, not only will work, but will hit the numbers he believes it will. stuart: all right. kevin brady, republican congressman, thanks as always for joining us, thank you very much indeed, sir. >> thank you, stuart. stuart: i'm just going to repeat some of the numbers we received about an hour and five minutes ago. important numbers that are raising a lot of questions this morning. number one, the unemployment rate came down to 7.8%, number two, we got that sharp drop in the jobless rate, even though we only created 114,000 new jobs. and now, how come we got such a big drop in the rate and so few new jobs? the answer seems to be that there are two sides to this employment report. and the side from which the rate information is taken is the house old section, the household

report and they do a survey every month or three months, whatever it is of people in their own homes, that survey found 873,000 people have gone back to work and they've found some kind of work, why the rate came all the way down, even though there were only 114,000 new full-time jobs. and it's an anomaly, it's a contradiction within the report and it's raising all kinds of questions this morning. you check out the blogosphere, check out twitter and the tweets are flying thick and fast, because it seems so convenient that the rate should drop so much, what is it, 31, 32 days from a vacation -- an election i should say. all right. all right. coming up new at 10, joe biden, he says yes we do, to a 1 trillion dollar tax increase. and we'll show you exactly what he said at the top of the hour, back to nicole, the dow shrugging off the jobs report. maybe it likes the jobs report.

i don't know. tell me what the winners are, 'cause we're up 68 on the dow. >> i'm dying to stick to the facts after the jobs report which brought so much uncertainty and chatter here on wall street and i could so easily deliver you dow winners including names like alcoa and j.p. morgan, caterpillar, cisco, we've watched the financials do very well, stuart. a lot of people. ted weisberg of seaport securities will say watch the financials, they tell you about this market. bank of america, this week, is up 9%. and that makes everybody feel good, right? probably all of those mutual funds that you probably own, bank of america is a big one. up 9% this week. stuart: okay. and let's not forget, warren buffett has the right to buy, i think, over 900 million shares of bank of america at $7.14 a share. so, if he bought them at that price now, almost a billion shares, looking at a profit, trying to do the math here, 4 billion, 4 1/2 billion dollars.

so, where was it again, bank of america what, 9.64 something like that. >> and change. stuart: all the financials are higher this morning, pretty much all of them. >> they're looking great and the banking index is doing well and goldman sachs and so was morgan stanley. goldman is up 6 1/2%. stuart: can you do me a favor, and go back to zynga, i don't know if you have it immediately. where is it. >> zynga 2 1/4 dollars down over 20% and cut their outlook be and this was an ipo in december, at $10 and it's not seeing the paying customers, they're seeing the customers dwindle and revenue dwindle. stuart: thanks, nicole, i want to bring in ed butowsky and the conversation about the jobs number. ed, you are a huge skeptic, tell us why. >> well-- [inaudible] i feel like i'm watching a movie, not the best movie. because there is no way in the world these numbers are accurate and somebody needs to dig deep into this.

how in the world, miraculously we have the best rise in 30 years right before the election, stuart? somebody needs to do an investigation and just like they do an investigation into libya they need to investigate the numbers because there's he no way in the world these numbers are accurate. stuart: well, wait a minute. what's your question, is the household survey, which says, 873,000 people found work in that one month. you're saying flat-out, investigate because it just doesn't look right, is that what you're saying? >> that's exactly what i'm saying. now what, saying on the record and say, investigate these numbers 'cause they're not -- there's not a chance in the world these numbers are accurate. i mean, i'm out there and see business, how in the world all of a sudden we have 600,000 more people in one month, all right, you know, and guess what [inaudible] people all of a sudden say, i'm going to start getting a part-time job.

investigate the numbers, investigate them, investigate them, they can't be accurate. stuart. stuart: and ed butowsky, we hear you loud and clear. thanks, ed. we want to hear from you, as well. sends your e-mails right now varney@foxbusiness.com. this is a contentious jobs report. is it not. seven early movers this friday jobs morning. zynga, no one is buying phantom pigs, and that stock is falling now i believe 20%, citigroup says buy netflix and netflix is up again, it's on a bit of a roll recently. and nicole's favorite, starbucks, into digital paying and even tipping. starbucks at 49 today. technology firm data link lowered the outlook, usually --d ann arbor realty trust selling shares to raise money, don't like that down 5%. women's apparel maker cache, down 2.735, or 15%.

and moody's placed hewlett-packard for review after the company cut expectations. hewlett-packard 14.79. the obama administration's environmental policy shutting down coal plants and that means no more jobs for blue collar americans in the coal fields. we found out exactly how many jobs coal is losing after the break. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process --

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>> now, we are up 44 points on

the dow industrials, we had been 60, could be a modest reaction to the down side move in the unemployment rate. 13-6 for the dow. look at the price of oil and i think we're back to $90 a barrel and yes, we are. despite the spike in california, the national average for gasoline remains pretty much unchanged. around 3.78 and diesel is holding at 4.08. we had to bring you that price every single day. governor romney had strong words in defense of the coal industry wednesday night. and listen to this. >> i'm going to make sure we can continue to burn clean coal. people in the coal industries feel like it's crushed by your policy. i want to get measured north america aenergy independent. >> and coal, joining us from virginia, ted blackwell, the former secretary of state from that state. and mr. blackwell how many jobs have been lost in ohio in the coal industry. stuart, it's

fair to say thousands of jobs have been lost. and on top of that, you know, average working families have utility rates that are going through the roof. this is an administration that has turned on coal and coal miners, it's turned on natural gas. ohio is a mecca for cheap energy and this president has decided that he will choose to, you know, just feather the bed, feather the bed of his guys in the green industries. stuart: you've lost thousands of jobs in the state of ohio and you have a president who dislikes fossil fuels, whether it's natural gas, oil or coal. given that circumstance, why is ohio swinging towards president obama in the forth coming election? >> well, it's right now, obama is up, if you take a rolling average by about 5. i think that's going to come

down in the next couple of days as a consequence of the uplift from romney's debate performance. but at the end of the day, ohio is a battle ground state and it's up for grabs. and that's because we have a president that has shepherded anemic economic growth and job creation. we have to make a choice whether or not we want to continue down that path or whether we want to go down the path of robust energy and economic expansion and job creation. stuart: what is it? is it epa rules that are just closing down coal mines so they can't use, you can't use coals in a power plant? epa rules are doing this? >> the epa is an aggressive deterrent for the use of coal and the production of jobs. but look, at the end of the day, this is an administration that has chosen winners and losers

and as governor romney said the other night, he is in fact chose losers. and he's put billions of dollars against, in the pockets of his friends who have produced zero jobs. stuart: all right, ken blackwell, former secretary of state for the the swing state of ohio. thanks very much for joining us this morning, sir, we do appreciate it. thank you. >> good to be with you. stuart: 9:49. the gold report, here it is, are we any closer to 1800? well, we're close, but moving away from it, we're down 11 bucks this morning at 1784. it's one of the most valued rights here in america, yes, it is. freedom of speech. so, why did this girl get berated by her teacher for wearing this shirt? i'll give you a hint. it wasn't democratic enough. charles payne and elizabeth macdonald our company members this friday morning and a lot to say about romney shirts and the teachers union. all energy development comes with some risk,

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>> i've got a shocking story for you, bear with me while i explain it. a 15-year-old high school student wears a romney-ryan shirt to school. a teacher beratines her and wen in the hallway to tell other students and teachers to mock

her for it. the teacher said, quote, this is a democratic school and wearing a republican shirt is like wearing a kkk shirt. the student complained and she's moved out of her class and is still teaching students. >> in philadelphia the confusion as signed first amendment free speech rights. if this is a democratic school, have the democratic taxpayers pay for it, charles. >> it's despicable, outright despicable. this teacher should be fired and never allowed around any kids again period. stuart: she can't be fired. >> i know, this is what's wrong with the educational system. my son tells me all the time and told when is he goes to school then they he do this. teachers taking digs at the republicans and it's amazing how to indoctrinate our kids at an early age and despicable and should be illegal. stuart: back to first principles, should any school go to school wearing a political shirt?

>> absolutely. stuart: that's legit. >> absolutely. it's better than the game shirts. >> i had to make my son take his shirt back, out the store and check out the shirt u' got to be kidding. >> and i like schools with uniforms. stuart: thank you much indeed. >> in japan they've done it forever, i think it's smart. you don't have any class warfare, envy and go to school and learn. >> a nice blue plaid uniform. >>, but in a country of free speech. romney-ryan or obama-biden t-shirt. but to liken the republican shirt to the kkk. >> it's sick. >> i think we're in agreement ladies and gentlemen, this friday morning, one thing that did not come up in wednesday's debate to the surprise of many was mitt romney's comment about the 47%, and new at 10, romney calls that comment a mistake. . >> well, clearly in a campaign with hundreds if not thousands of speeches and questions and

answers sessions, now and then you're going to say something that doesn't come out right. before copd...

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september. the numbers do not add up. we are talking about it. new at 10:00 mitt romney defense is 47% comment about entitled americans. he says with a mistake to say it. he was completely wrong. we will play his comments in a moment. to the big board drop in the unemployment rate maybe has some impact on the market because it is up 61 points. thirteen-6 firmly above the level now. friday morning jogs day. here's the company ideally suited to address the subject. liz macdonald, charles payne, nicole petallides on the floor of the stock exchange. google, nicole. an all-time high. nicole: it continues to move higher and higher hitting this all-time high at 774. we are seeing internet tight stocks struggling but do will continue to take off. stuart: i don't know what is but well above $20 billion each.

i shouldn't put you on the spot because i don't know how many billions but it is a lot of money. the big story of the day obviously is the jobs report. 114,000 new jobs created in september. that is anemic but the unemployment rate fell three points to 7.8%. you went through with this at 8:30 on the network. they don't add up. the numbers don't make sense. charles: 870,000 jobs for the household survey off the charts. this sort of environment where gdp is growing 1% the numbers don't add up. liz: a lot of those according to ray hennessey our news director small-businesses start of the people turned themselves into putting things up on ebay. can thousand government jobs created. the trend isn't going in the right direction.

200,000 jobs is what we are seeing. the first quarter we need to be well above that to drive the unemployment rate down but great job. stuart: on the household survey side they said 873,000 people went back to work. and change for three months in a row and we found 600,000 of those are part-time jobs. the other side is the payroll side where we have 114,000 new jobs. that is the anemic. charles: the first red flag, 1 14,000 private-sector jobs was 16,000. a 60% decline. people working part-time for economic reasons and manufacturing lost 16,000 jobs. stuart: the upshot is many people are skeptical about these numbers. there are too many contradictions in the report and

it is convenient for the obama administration with a big drop in the headline rate before the election. let's bring in romney's chief political adviser. are you going to express any degree of skepticism about these numbers? >> we will address the numbers as released. as you said on the show, and anemic trend. it is not what a real recovery looks like. two thirds of the jobs are part-time jobs for folks who want full-time work. if you look at labor force participation rate and adjust for when barack obama took office it is closer to 11%. we have got to think about what americans are feeling. stuart: i hate to interrupt but this is a very big deal for a lot of our viewers and the economy. we had people on the show saying the government is cooking the books. they don't trust the numbers.

skeptical of the numbers. you are not going to have any part of that? you will not say it is convenient for the obama administration? you are walking away from that? >> i will leave that to other people and say we will address the numbers they released. stuart: mr. romney says this is not what a real recovery looks like. fewer jobs were created in september in the month of august and if you put back in people who dropped out of the work force the unemployment rate is 11%. the campaign is painting a grim picture of the economy with the unemployment rate. >> i don't know if anyone can paint a rosy picture of the economy. we have a weak recovery. 114,000 payroll jobs created is not a strong no.. as the governor mentioned we have seen declining job growth and average job growth slower in

2012 than 2011. a lot of reasons this economy is not in the recovery we hope the american people would want. stuart: the president is probably going to say we are going in the right direction. the headlines in the newspapers and on television is going to be big drop in the unemployment rate, 7.8%. the obama team will exploit that. >> they will do what they will do. they will have talking points about the economy. go to florida or nevada and talk to real americans they are thinking about how to meet with higher prices for gas or food or health care and lower house holding come. they are going to do what they are going to do but the american people know what the economy is. stuart: does it deflate not governor romney's balloon but he got a bump out of the debate. he won flat out. does this deflate him a little? that headline will say the

unemployment rate drops. >> the reality is people are going to have looked at the debate wednesday night and saw two different potential candidates, potential leaders of the country. mitt romney painted a clear picture where he wants to take the country and the other was barack obama had no plan and no way to justify his 4 year track record. the american people will concentrate on that choice. these numbers bounce around and are very volatile. what we are trying to make a case about is what the next four years will look like. ronny will make the next four better than the last four. stuart: appreciate you being with us. try to get governor romney on this program. >> we will do our best. stuart: thanks very much. president obama is expected to speak about the jobs report later this hour. in fairfax, va. waiting for the president.

the president lost the debate. the next day, that would be yesterday bounces back with a very energetic performance attacking governor romney. now he is about to speak where you are in virginia. what do you think he is going to do? keep the bounce back and be aggressive? >> yes. that has been the whole point. get more aggressive than what he had a couple nights ago in the debate and this will be a discussion about the jobs number and a campaign moving forward and an economy moving forward and a real problem with the way the president came out the other night. wanted him to be more aggressive and go after mitt romney more than he did and that is what he did the next day. he didn't do it during the debate. stuart: we are going to carry the president's remarks when he makes them later this hour. 45 minutes from now. we are following that. rich edson.

there is a lot of skepticism about those jobs numbers and you are expressing it to us on our facebook page. regina is one of many skeptics and she says no way. something smells like fish. amy is downright offended. do they really think we had this to bid? strong stuff on facebook today. this from candice. convenience is an understatement. join in this debate. a very active discussion. new at 10:00 mitt romney tries to walk back his now famous 47%, and. here is what he said last night with sean hannity. >> clearly in a campaign with hundreds if not thousands of speeches and questions and answer sessions you're going to say something that doesn't come out right. i said something that was completely wrong. i absolutely believe my life have shown that i care about

100%. charles: i am glad he did that. first and foremost it is crazy to think you can't get votes of 47%. i will tell you the group they're talking about has begun to go more to democrats but reagan got a bunch of them and the bottom line is the president is working for every one. liz: many of them are seniors living on social security but the issue is mitt romney did say sit by his in elegant remarks that he has apologized. how it plays out and whether the president can capitalize in the next debate or if it will look stale and gold remains to be seen. stuart: is it a good political move to go out with sean hannity and say complete mistake? charles: yes. i wish the president would try that. no one is perfect. great to see someone say i said something that was wrong. liz: you're going to say

something like that. stuart: check out these headlines on the jobs report from the mainstream media. this is online obviously but here they are. the new york times trumpets the report. jobless rate at 7.8% lower since 2009. same from the washington post. u.s. jobless rate falls to 7.8%. 114,000 jobs added. john yahoo! jobless rate falls to 44 month. liz: the broad perspective everyone is missing is the percentage of working age people in the population is lower than it was when the recovery began in july of 2009 and even then is that a 12 year lows so that is the problem. we don't have enough people working in the workplace. charles: i don't think the mainstream media is missing anything. they tried to paint a rosy picture of any news and try to make 114 -- the number missed estimates.

it is a terrible number. so many negatives. [talking over each other] charles: celebrating mediocrity is dangerous for a nation. if we are going to celebrate this we will never be the country we were before. stuart: if you put a question mark at the end, with only 114,000 jobs. liz: gdp at 1.5%. stuart: thanks for your comments about the establishment. californians wake up. you are waking up to a major spike in the price of gas because of refinery problems. look at this for a second. statewide average price for regular gas up $0.17 overnight. statewide average in california is 44 h. that is regular. individual cities as bad or worse up $0.20 overnight. $4.53 the average. l a, $4.50.

san francisco up $0.16 at $4.59. let's bring in patrick with gasbetty.com. we hear predictions, prices will keep going up and head towards $5 for regular. >> it may head towards $5 a gallon. we are heading a new all-time record, stand at $4.60 one cents. i keep getting e-mails, we have alerts going on. crazy situation. and keep in $4 territory. stuart: there are spikes. this is the most dramatic spike i can remember when you are up $0.20 in a major city that is a spike. ever seen anything like this

before? >> nothing outside hurricane katrina. never seen anything like it. we have seen the largest single-day increases. every city in california new records are established. before yesterday the largest single-day increase, we blew it out of the water. stuart: a huge spike. thank you very much. we will be back in just a moment. everyone has goals. take the steps to reach yours, with us with real advice, for real goals. the us bank wealth management advisor can help you. every step of the way. from big steps, to little steps. since 1863 we've helped guide our clients, so they can take the steps to help grow, preserve, and pass along their wealth. so their footsteps can help the next generation find their own path. all of us serving you.

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stuart: a big story today. the jobs report. 7.8% on the unemployment rate. a big drop since january of 2009. only 114,000 new jobs created last month less than half what you see in a strong recovery. here is a contentious number. 873,000. that is the number of people who say they found work as part of the household survey. not in the traditional sense of work. going to work every day for an outside employer. most of them are self-employed doing whatever they can to make a little money. there are contradictions in this report. a lot of people very suspicious of this number.

a big drop in the unemployment rate before the election. we will be back in just a minute.

stuart: inflation rising sharply in iran. beef and lamb out of reach even for middle-class iranians. after protests this week security forces are patrolling key intersections and the bazaar in tehran in an attempt to keep the calm. the latest updates from this

contentious area when we get them. what is it with democrat vice presidents after the debate? how course that was the altitude in denver that affected the president's debate performance, quote, obama arrived in denver at 2:00 p.m. a few hours before the debate started. romney did his debate prep in denver -- >> the altitude does affect you but take a 5 our energy drink and drive a few days earlier. [talking over each other] stuart: you agree altitude could have affected his performance? charles: al gore is saying mitt romney is someone who is smarter at being prepared. recently he is saying this is a

guy who prepared properly for an important event when the president was at lake las vegas playing golf. that is the we want to frame at fine. you health and make my decision for november. liz: al gore said i will say something controversial and then he said it was the altitude. stuart: joe biden, tax the rich. >> obama and joe biden want to raise taxes by trillion dollars. guess what? yes we do in one regard. we want to let that trillion dollars tax cut expiry so the middle class doesn't have to bear the burden of all the money gone to the superwealthy. that is called fairness. stuart: he's referring to lead the bush tax cuts expire for the top 2%. where do we begin? he did say it is okay to raise

$1 trillion of extra taxes on the superwealthy. [talking over each other] if charles: the idea that a guy with the plumbing for would be slashed with a buffet tax of the outrageous. and a trillion dollars lingering with the tax cut is outrageous and the idea that somehow other people benefit is outrageous. one more thing that the government is giving these people the money. they earned the money. you are not giving them anything. they earn this money. it is their money, not yours. liz: the vice president has been around since the nixon administration so people like charlie randolph have been in office to oversee $16 trillion in federal deficit spending. to pay interest on that, you make an important point. what is missing in the vice

president's comments, again and again never brought up by the administration. stuart: tax the rich. that could win the that could win the [talking over each other] [talking over each other] stuart: when they's debate was the first time obama face real criticism and he lost. that is my take and it is next.

>> if you look at the unemployment number, the bulk of them, nearly 600,000 got part-time jobs. they wanted full time and getting part time. the number dropped and we don't want a part-time recovery. stuart: that was congressman kevin brady's analysis of the jobs report. tune in weekdays at 9:20 sharp. this is a rally. the dow firmly above 136. ibm has said another new high.

coming -- nicole: it is $2.79 for ibm which is up $0.16. we have been watching hewlett-packard and that has been going in the opposite direction. what is interesting is we did get the news that there was a contract in which ibm was supposed to pay $543 million over 2 hewlett-packard. don't need to do that. stuart: that is a lot of money. stocks up. dow up 85. down a little. we are off on gold $7, $17.89. the price of oil at $90 a barrel. it is down $1.46. thirty-six hours after the debate we have had time to digest all that was said. looking back on it something stands out that has not received much attention. here's my take on president obama forced to confront his record in front of sixty-seven million voters.

think about it. when was this president facing critical scrutiny? at press conferences? he rarely takes questions and when he does he runs out the clock with long answers. most of the press corps gives him a pass. they went after president bush big time when gas prices hit $2 a gallon. where were the tough questions for mr. obama with gas at 4? how about speeches the president has delivered? the audience is always friendly and for four years he has always said things are improving and it is bush's fault anyway. then along comes mitt romney and write out the gate the president is shocked visibly when the challenger brings up his dismal record. he is not used to this. wasn't like this on view. didn't get into the $16 trillion debt. that debate serve a great purpose. we the people represented by mitt romney got the chance to

confront the president with his own record. it was a revelation. that is my take. charles payne, a dynamic guy, takes you through the rest of the hour after this.

that will go. charles: do not adjust your tv

sets. i am charles payne. stuart is fine. he had to leave on an assignment. the highest level since 2007. you can see it right there on the screen. dow jones is up 83 points. we have to get back to the jobs report. first thing is how surprised were you with these numbers? >> i was not surprised at all. the big picture, you had 114,000. that is a better number. if it is not a good number, it is a better number. the unemployment number is still way too high. we have to create 200,000 jobs a month to start making a change. charles: one of the concerns i have is this thing is being pushed out in the media is a great bit of news. that this is fantastic.

how dangerous is it as americans we become satisfied with 104,000 private jobs and we start to celebrate this type of mediocrity? >> it would be really sad if we used this as a great point to say things have turned. they have not turned peered what will it do for the economy or stock market? let's see what the economy does to react to how the stock market will do. charles: someone watching the show will say that the dow is rocking. wall street must love this number. >> i guess wall street has loved every numbers and mario draghi said everything would be good in europe also. we are ahead of ourselves. let's step back. we have an election. that is the most important thing

that will affect our market. personally, i am positive the stock market, but not at these levels -- charles: you brought up the election. the two candidates. which one, in your mind, without the best effect for the u.s. economy? >> romney, by far. no question about it. there is more clarity. he has a program. he does not just talk about generalities. we need a change big time in this country. now is the time to do it. charles: obama supporters say the market is up 100% because of him. thanks a lot. have a great weekend. many of you love stuart might take. the too short to the interview on time. put on a clean pair of pants. do not show your underwear.

that goes for young women also. baseball caps, by the way, come off indoors. [laughter] charles: some practical advice did the youth unemployment 23.7%. that is for 16-19 years old. paul, i have to tell you something, i look at these numbers for our teenagers in america, they are way worse than what sparked the arab spring. our teenagers are suffering participation, unemployment rates, employment to population, any metric that you look at. what is going on? >> the problem is there are not enough full-time meaningful jobs that are being created at the entry level. even though part-time jobs. there is such intense competition for work.

people who have degrees are taking work that is usually entry-level type of stuff. same exact dynamic is going on for those that are 18-29. today's number for them is 11.8% unemployment. charlie: is there something fundamentally going on? a lot of people look around, i don't know, maybe every generation does it. when you see kids walking around in their underwear is showing in the attitude is in different, isn't something to to be said around this generation not having the emphasis or desire to work? >> no. i would flat out reject that. when you take a look at this generation, i think they are creative, engaged in a absolutely have the discipline to make it happen. the fault is not on them. it is on and it economy that is not growing wide enough for these people to actually get work. we are in front of hundreds of thousands of these folks all the

time. we have over 4 million of them on our facebook page. the problem is the economy and the president's policies that are not creating the opportunities for them. >> we see so many figures and that mode. >> when we look at the stat load issues, democrats saying what they want, lower student loan interest rate. when you ask people what they want, to indicate the 64% of them, indicate they want a full-time meaningful job upon education. that is far more important than having a low interest rate. the prospect of a series of part-time jobs and not part-time jobs to pay the loans. charles: just kind of experiencing the occupied movement and talking to a lot of those kids down there, a lot of them privileged, they go to

columbia, nyu, if it is not the job of their dreams, they will not take it. that is problematic. >> we did a question on this. we asked what would you rather do, work on wall street or protest on wall street. only 29% said they would actually protest. when you actually push it in and ask if they know somebody on occupied wall street -- that does not represent a generation. this is a generation that has put on a uniform, fought two wars, served around the world, rebuilt after katrina. they are fine people. the issue is the economy. >> charles started working at a young age. i started working at age 15 to put myself through college because i came from a big

family. are you seeing those attitudes change? >> very much so. when we are in front of folks, the first question is, can we come work for you. the second is what advice do you have about employers in our area. what you see is a real desire. i want to start my career and give my skills going in high school because they see that when they look at their older brothers and sisters as a potential leg up good figures are not certain about jobs. charles: paul, you brought us some great points. we definitely want to have you back on. some of the trends kind of go against what you are saying. the points you have made, you are absolutely right. it is a shame. an awful shame there are not more opportunities out there. thank you very much. we appreciate it. the president and the first family how to live a certain

lifestyle. but should it cost the taxpayer $1.4 billion per year? that is next.

♪ charles: .the controversy about this morning jobs report. the unemployment rate dropped unexpectedly to 7.8% because of the housing survey. companies are not hiring. people are creating their own

work. we are fitting all of your tweets and facebook comments. you do not trust this number and you are not alone. unbelievable jobs numbers. these are cargo numbers will do anything. take a look at the stock market right now. the dow jones industrial average up. back in 90 seconds with the man who said we spent $1.4 billion a year on president obama and his family. ♪ want to try to crack it? yeah, that's the way to do it!

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charles: breaking news. we are waiting to hear from president obama speaking about the jobs report. he is expected to say that more americans have entered the workforce and the unemployment rate is at its lowest level since he took office. we will bring it to you exactly when it happened. right now, back to nicole petallides. the market is up for the most part. nicole: a day where we are taking off on wall street. we have hit a new high on the dow jones industrial. it dates back to november 2007. 13,661 and change. exxon mobil is also up. it is hitting a 52 week high. home depot, verizon, general

electric, walmart, mark, just to name a few. i also have ibm and pfizer and there. a great day on wall street. charles: great american companies. taxpayers are shelling out. nearly $1.5 billion at least last year. it is for the so-called presidential perks. joining us now john. welcome to the show. this is an absolute astonishing number. it is hard to fathom $1.4 billion. >> the way to think of that number is that has nothing to do with the cost of running the government. that is comparable to what the average american family spends. if a family spends $50,000 a

year for things like transportation and food and etc., the comparable number is 1.4 billion. charles: what are they spending it on? i do not get it. what are they spending that kind of money on? >> there are little things and big things. michelle obama will typically leave for vacation maybe a few hours before her husband just to get a head start. that normally would not be a big deal. in their case, since they are using plants that cost as much as $250,000 an hour, this is a big deal. when she leaves a few hours earlier, that can cost taxpayers a couple hundred thousand dollars. on the big side, the president canceled a program that was developing a new presidential helicopter fleet. the president party has 31 helicopters in the fleet. they spent $3.3 billion

developing a new presidential helicopter fleet and then declared a failure, so the prototypes to canada for $154 million in taxpayers took a loss of $3.1 billion got zero helicopters. >> is also compares to the royal family. 57.8 million in england. when we are talking about 1.4 billion for the president, you are talking about air transport, secret service costs security. >> we have a section on that. it includes the czars. they are not necessary. there are already duplicate roles of other people and the

government serving essentially the same functions. when you talk about travel, a lot of people say, oh, well, he is the president, he has to travel. that is true up to a point. the fact is he does not have to vacation in hawaii which is the most expensive place he could travel because it is the furthest from washington. they do all of these sorts of spurious things. when the president runs out for fast food, that is a photo op for the front is what people do not realize there is a full security contingent following them on those trips. charles: at the end of the day, it is nice to be the king. [laughter] john, we will talk you later. the $1.4 billion man. mitt romney's debate when they have narrowed the gap some key swing states.

voters are still picking president obama. why? flight is a state with the republican governor still so blue?

lou: mitt romney's debate performance may have helped them to gain some. president obama -- the question is why. joe, why is this? you have date key battleground states with this hugely successful republican governor. the state remains blue when it comes to the election. >> we do not know that yet. [ talking over each other ] recently, that is true. before that, just to remind viewers out there, new jersey was based date that richard nixon won twice, gerald ford,

george bush sr. the first time. charles: what happened when i think a lot of it depends on the nominee. i am running for the u.s. senate this year. i think i have a good chance to win. we need mitt romney to keep things tight. i think he has reshuffled things around the country. i think in the upcoming days, next week, we will see the evidence of that in the polling. charles: what is the difference between you and the last republican that ran? >> i was like 12 the last time we had a republican win for that united states senate. it was a very tough race. [ talking over each other ] the difference this year is my

opponents have been there now for seven years, appointed by john corzine who left the senate. he has a field record. america's record is a failed one. the differences him and me. also, the times we are living in. you are reporting it all running long. they will try to take credit for the downtick in the unemployment number. there are millions of people not working across america. >> at the same time, new jersey has a tangled wire of tax codes. it is barbed wire for the people there. what is going on there? >> it is getting better under governor christie. we work together unlike the guys in washington to try to make the state better and more competitive. [ talking over each other ]

stecich. charles: he said his goal was to create a larger middle class. what is your message? >> i want to produce for the middle class did i have a jobs plan. deal with the tax code. get the junk out of the tax code. deal with regulation. inspire confidence and certainty in the economy. we can do better. charles: i agree with that. thank you a lot. we will talk to you later. the highlight reel is next. f yol night-vision goggles, like in a special opsission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect.

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stuart: widespread distrust and skepticism about these numbers. they don't believe the numbers. they think it is -- the obama

administration. >> french like employment environment. charles: we celebrate this we will never be the country we were before. stuart: those headlines are valid if you put a question mark at the end leva "cavuto"% employment with 114,000 jobs. charles: too bad stewart is not editing -- here are two numbers. 7.8 vs twenty three million. i thought mitt romney had a home run when he talked about twenty-three million unemployed or underemployed. that did not change. >> when you do that, full employment rate is 15% and percentage of the working age population that is working is lower than when the recovery began in june of 2009 so that is the issue. charles: i had the same debate with dagen mcdowell and connell mcshane. it will continue.